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Costs of logistics and inspections are too high

Vietnam government needs to help cut logistics cost for produce

Within Vietnamese commerce, logistics costs have accounted for 29.5 percent of fruit and vegetable value, said Nguyen Duy Minh, vice chairman and general secretary of the Vietnam Logistics Business Association.

Transportation costs in particular have accounted for 61 percent of total logistics cost for fruit and vegetable products, followed by handling costs with nearly 20 percent of the logistics costs.

At an online conference on the logistics costs in the value chain of Vietnamese agricultural products held recently in Hanoi, the experts said that the factors behind the high logistics cost included high transportation cost, high fees and charges of foreign shipping companies and restrictions on ports and infrastructure.

Besides that, new rates of infrastructure fees set by localities and the implementation of special inspection or quarantine quality inspection were also reasons for the high logistics costs, they said.

Tran Thanh Hai, Deputy Director of the Import and Export Department under the Ministry of Industry and Trade, said that value of agricultural products is low while transportation costs are high. Besides that, agricultural products need cold storage and professional transport vehicles. These two factors have also put great pressure on logistics activities for agricultural products.


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